23rd May 2022 / Jeremy Desmier: Market Update | 21 & 22 May 2022

With the Federal election done and dusted, we can now look forward to what the result will mean to the real estate industry. Labor leader, Anthony Albanese, will be sworn in as the 31st Australian Prime Minister this week.

With housing affordability a major topic, the incoming Labor government has promised to enact a 'Help to Buy' scheme, which would cut the cost of a mortgage by up to $380,000 for some eligible Australians. The program involves the Labor government providing eligible home buyers with an equity contribution of up to 40 per cent of the purchase price of a new home and up to 30 per cent of the purchase price for an existing home. Buyers will be able to purchase a property that they intend to live in with a deposit of as little as 2 per cent. Participating lenders finance the remainder of the purchase. The government would recover its equity and its share of the capital gain when the house is sold.

Mr Albanese has also pledged to establish a National Housing Supply and Affordability Council, reportedly to be composed of experts from several sectors to work with states and territories on setting targets for land supply. Finally, under an expansion of the First Home Guarantee, the Labor Party has promised to help 10,000 Australian families a year to buy their first home.

Another key factor for whichever party was successful on Saturday, is the expected continued interest rate increases. However, the REA Group reports that most borrowers are well placed to manage higher repayments and are expected to cope. The Reserve Bank board will be watching how households react to rising interest rates when determining the timing and extent of future hikes.

Over the weekend, as well as some delicious 'democracy snags', we enjoyed beautiful Autumn weather. Auction volumes were lower as expected due to the election, however those vendors that did go to market were quite successful, with the Fletchers Group achieving a 100% clearance rate.

In Box Hill South, a decent crowd turned up at 10am for the auction of 22 Kitchener Street, an impressive family home well-located within the Box Hill High School zone. After a slow start, four bidders eventually got involved in an attempt to secure the home, with Partner & Auctioneer Steven Zervas declaring the property sold at $1,701,000. He also sold the light-filled home at 416 Burwood Highway in Vermont South, post-auction on Sunday.

An impressive six bidders competed for the three-bedroom home ay 4 Nottingham Court in Viewbank, where a family-focused, convenient future was on offer. The property sold under the hammer with the team at Fletchers Banyule for $1,229,000.

In Bulleen, 10 Austin Street sold under the hammer with Jack Zhang and Jason Salan for $1,090,500 with four bidders hoping to secure the exciting opportunity to renovate or redevelop. Jason and colleague Jackie Chu also sold 1 Moreton Street in Balwyn North prior to auction.

We were thrilled for all of our successful vendors and purchasers over the weekend and look forward to another busy weekend ahead as life settles down post-election.

Results. It's a Fletchers thing.